New Delhi: India has joined a group of developing economies in pushing for a global framework to reduce the cost of cross-border remittances, positioning the issue as a key development priority ahead of the 14th Ministerial Conference of the World Trade Organization scheduled in Yaoundé, the capital of Cameroon, later this month.
The conference will take place during 26-29 March 2026.
In a revised draft ministerial declaration circulated on 17 March, India, along with Morocco, Pakistan and the African Group, called for coordinated global action to bring down remittance transaction costs, which remain significantly above the United Nations’ Sustainable Development Goal target of less than 3% by 2030.
India is world’s largest recipient of remittances, with inflows estimated at around $135.4 billion in FY25, according to an India Brand Equity Foundation (IBEF) report. This marks a steady rise from about $129 billion in 2024 and reflects a strong increase over the past decade. now account for over 10% of India’s total current account receipts and play a key role in supporting external stability, it said.
The draft declaration, circulated at the request of the co-sponsors, underscores the importance of remittances as a key source of external financing for households in developing and least-developed countries. It notes that remittances contribute to poverty reduction, and health outcomes, and greater resilience to economic shocks.
The WTO document emphasizes that lowering remittance transaction costs is critical to advancing the Sustainable Development Goals (SDGs), particularly SDG 10(c), which targets reducing such costs to less than 3% by 2030.
The move assumes significance as developing countries are increasingly pushing to bring development-linked financial issues, such as remittance costs, into the 164-nation WTO negotiating space amid limited progress in traditional trade areas.
“The demand for reducing remittance costs is growing as high transaction fees continue to limit the full benefit of these flows for developing economies. Bringing down these costs will ensure that more money reaches households, while also supporting financial inclusion and greater use of formal channels,” said Sumita Dawra, former labour secretary and former special secretary at the department for promotion of industry and internal trade.
The push is important as remittance costs are still above the 3% global target, with fees in some routes going as high as 5-6%, reducing the money received by families.
“For countries such as India and many African nations that receive large amounts of remittances, even a small drop in fees can lead to significant additional inflows,” said Sundeep Nayak, former director general of the National Productivity Council, a commerce ministry body. “Lower costs can also help shift transfers to formal channels and improve transparency and financial inclusion.”
In the draft, ministers reaffirmed commitment to promoting an open, transparent and competitive international financial system that facilitates cross-border remittance transfers under fair and low-cost conditions.
The proposal calls on the WTO’s Committee on Trade in Financial Services to examine regulatory, technical and structural barriers that contribute to high remittance costs, and to make recommendations for coordinated action. It also seeks development of a multilateral framework of guiding principles focused on transparency, interoperability and competition in remittance services, in cooperation with relevant partner organizations.
The document encourages establishment of technical assistance programmes for developing and least-developed countries to strengthen their regulatory, technological and institutional capacities in cross-border payments.
is a global body that sets rules for international trade and provides a platform for countries to negotiate agreements and resolve disputes. It plays a key role in governing trade in goods and services, including financial services under the General Agreement on Trade in Services (GATS). The ministerial conference is its highest decision-making body, where major policy decisions are taken.